43 days to Inauguration -- Tensions rising: The left starts to chafe, with some liberals unnerved by Obama moves -- Steve Hildebrand blogs that progressives should be patient

Switching chambers: KBH's Marc Short will be staff director of the House Republican Conference -- Rev. Wright on Obama, media and "the gates of hell" -- Karen Keller's birthday

BREAKING, from AP: A Pakistani government official says security forces have arrested a man alleged by India to be one of the masterminds of the Mumbai attacks.

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Good Monday morning from Key West, where Michael Cromartie is maestro of "Faith Angle," the Pew Forum on Religion and Public Life’s conference on faith and politics.

HOUSE'S FIRST TEST VOTE ON AUTO BAILOUT COULD COME AS EARLY AS TOMORROW.

BUZZ: CNN’s “Late Edition” will probably get a new name – and will certainly get a format adjustment, with more fun mixed in with the newsmakers – when John King takes over from Wolf Blitzer.

EXCLUSIVE: House Republican Conference Chairman Mike Pence (R-Ind.) will announce the senior staff of his leadership office today: Chief of Staff Marc Short, Deputy Chief of Staff Josh Pitcock, Coalitions Director and General Counsel Melanie Looney, Communications Director Matt Lloyd and Policy Director Russ Vought. Short is chief of staff to Sen. Kay Bailey Hutchison (R-Tex). Before that, he was a political appointee in the Bush administration. He also has been executive director of the Reagan Ranch in California, executive director of Freedom Alliance, and national director for the Young America’s Foundation. His wife Kristen worked with him at the ranch and Young America’s Foundation. Matt Lloyd has been communications director in Pence’s personal office since 2003 and was communications director for the House Republican Study Committee when Pence was chairman from 2005-2006.

DON’T FORGET TO WATCH -- Rob Nichols, president and COO of the Financial Services Forum, as guest host with the anchors of CNBC’s “Squawk Box,” 7 to 9 a.m. ET.

Rob Nichols on Obama's selection of Tim Geithner for Treasury Secretary: "I think that is just a SUPERB choice. I hold Tim in high regard. I think that was just an exceptional choice. The time he spent at the New York Fed working on the rescue plan ... is going to serve him extremely well. He spent many years at the Treasury Department, of course, on the international side. He has spent some time in China. He speaks Mandarin -- I think that bodes well for the U.S.-China economic relationship."

DRIVING THE CONVERSATION: “Liberals voice concerns about Obama,” by Politico's Carol E. Lee and Nia-Malika Henderson: “Liberals are growing increasingly nervous – and some just flat-out angry – that President-elect Barack Obama seems to be stiffing them on Cabinet jobs and policy choices…. ‘He has confirmed what our suspicions were by surrounding himself with a centrist to right cabinet. But we do hope that before it's all over we can get at least one authentic progressive appointment,’ said Tim Carpenter, national director of the Progressive Democrats of America. OpenLeft blogger Chris Bowers went so far as to issue this plaintive plea: ‘Isn't there ever a point when we can get an actual Democratic administration?’ Even supporters make clear they’re on the lookout for backsliding. ‘There’s a concern that he keep his basic promises and people are going to watch him,’ said Roger Hickey, a co-founder of Campaign for America’s Future. Obama insists he hasn’t abandoned the goals that made him feel to some like a liberal savior.”

BUT … DAVID CORN WROTE IN WASHPOST “OUTLOOK”: “My hunch is that Obama has made a calculation. In constructing his administration, he has decided not to create a (liberal) Washington counter-establishment. Instead, he's fashioning a bipartisan, centrist-loaded version of the Washington establishment to carry out his policies, which do tilt to the left.”

AND … OBAMA DEPUTY CAMPAIGN MANAGER STEVE HILDEBRAND has “A Message for Obama’s Progressive Critics” on Huffington Post: “[O]ur new president, the Congress and all Americans must come together to solve these problems. This is not a time for the left wing of our Party to draw conclusions about the Cabinet and White House appointments that President-Elect Obama is making. Some believe the appointments generally aren't progressive enough. Having worked with former Senator Obama for the last two years, I can tell you, that isn't the way he thinks and it's not likely the way he will lead. … [H]e was elected to be the president of all the people - not just those on the left.

“As a liberal member of our Party, I hope and expect our new president to address those issues that will benefit the vast majority of Americans first and foremost. That's his job. Over time, there will be many, many issues that come before him. But first let's get our economy moving, bring our troops home safely, fix health care, end climate change and restore our place in the world. What a great president Barack Obama will be if he can work with Congress and the American people to make great strides in these very difficult times.”

DEMS WIN OHIO HOUSE SEAT – Politico’s Josh Kraushaar: “Democrats have picked up one final House seat this election cycle. With all the ballots counted in Ohio's Fifteenth District, Democrat Mary Jo Kilroy has defeated Republican Steve Stivers by a 0.7 percent margin, 45.9 to 45.2 percent. Kilroy's 2,311-vote margin of victory is large enough to avoid an automatic, state-financed recount.”

AP: “Tom Tancredo, the lightning-rod Colorado conservative, is retiring from Congress, maybe to run for Colorado governor in two years, maybe to join [an unspecified] right-leaning think tank.”

SPOTTED – Rudy and Judith at “Frost/Nixon,” sitting in the front row of the Loews at 68th and Broadway yesterday, because the theater was crowded and they didn't get there early. (Hat tip: Elizabeth Wilner)

TRACY SEFL is leaving Glover Park Group after 2.5 years and will be joining the newly renamed Navigators Global in January 2009 as senior vice president to build their new bipartisan communications practice.

CA GOV -- SCHMIDT, ADAM MENDELSOHN LEAVE MEG WHITMAN: The (San Jose) Mercury News, “Meg Whitman, the ex-eBay chief and moderate Republican who wants to be California governor, has hit the first hitch of her young political career. Two of her top political advisers have parted ways with her — most notably Steve Schmidt, who served as John McCain's lead strategist in the presidential race and ran Gov. Arnold Schwarzenegger's 2006 reelection campaign. Whitman generated considerable buzz earlier this year when word spread she had hired Schmidt and his business partner at Mercury Public Affairs, former Schwarzenegger communications director Adam Mendelsohn. The two were seen as an important counterweight to Whitman's inexperience, so their departure, which Mendelsohn called amicable, can only be viewed as a blow. … In an interview, Mendelsohn said neither he nor Schmidt was ready to devote the time and energy that running a gubernatorial campaign would take. … Mendelsohn added that Whitman will be a ‘very formidable’ candidate should she decide to run; she is expected to announce her plans early next year. All indications are that she will indeed enter the race.”

PRESIDENT 43 – National Review, “Bush Looks Back: An Oval Office conversation with the outgoing president,” by Byron York and Rich Lowry: “’Conservatives will rebound,’ President Bush said during an Oval Office interview Friday, but only with ‘new blood,’ ‘new ideas,’ and a ‘new wave’ of leadership. In a candid exchange during an hour-long session with National Review editors and writers, the president conceded that his eight years in office have sometimes been tough for conservatives, but said his philosophy of ‘compassionate conservatism’ is still the guiding belief of a majority of Americans. ‘Somebody said, “Oh, that's the end of the conservative movement,”’ the president told us. ‘Really? How about '64? Was that the end of the conservative movement? No. Do we need to be reinvigorated with new blood, new ideas? Absolutely…and there will be a new wave of people.’”

HAPPENING TWO WEEKS FROM TODAY-- Former Arkansas Governor Mike Huckabee will speak and sign copies of his new book at 1 p.m. Monday, Dec. 22, at the University of Arkansas Clinton School of Public Service in Little Rock, the nation's first to offer a master in public service degree. Huckabee was Arkansas's Governor when the Clinton School opened in 2005.

SMART TAKE – Wall Street Journal, “Obama Preserves Political Capital for Stimulus Plan,” by Jonathan Weisman and Deborah Solomon: “Barack Obama's transition team is resisting Bush administration overtures to coordinate more on the financial-sector rescue, convinced that neither the lame-duck President George W. Bush nor the president-elect has the clout to win a smooth congressional release of more bailout funds.”

THANK YOU FOR THAT: Rev. Wright, returning to the pulpit of Trinity United Church of Christ for the first time last spring, tells a service marking the congregation’s 47th anniversary that President-elect Barack Obama made a "bad decision" by distancing himself from his pastor, but added: "He’s still my child.” (Chicago Sun-Times)

Chicago Tribune: “Wright said no amount of media coverage could dampen Trinity spirit. ‘Jesus said upon this rock I will build--listen to the promise--my church,’ he said. ‘And the gates of Hell--listen to the promise--the gates of Hell--neither ABC nor CNN--the gates of Hell--neither Hannity nor O'Reilly--the gates of Hell--neither Time, Time magazine, Chicago Sun Times, Chicago Tribune ... the gates of Hell shall not prevail against it. Nothing will be impossible with God.’”

THE BIG IDEA – Not just Clintons, but also Kennedys! N.Y. Daily News columnist Mike Lupica: “It’s Kennedy time again: We are looking at one of the great political soap operas in New York State … Caroline Kennedy grabs spotlight amid speculation she's seeking Hillary Clinton's Senate seat.”

TRANSITION SPEED READ:

--NOW WE’RE NOT DEBATING WHETHER TO SPEND HUGELY, BUT HOW. In his N.Y. Times column, WILLIAM KRISTOL SAYS TO SPENT HE MONEY ON GUNS NOT ROADS: “[C]onservatives should think twice before charging into battle against Obama under the banner of ‘small-government conservatism.’ … [T]alk of small government may be music to conservative ears, but it’s not to the public as a whole. … [I]f you’re against big government, you’ll oppose a huge public works stimulus package. If you think some government action is inevitable, you might instead point out that the most unambiguous public good is national defense. You might then suggest spending a good chunk of the stimulus on national security — directing dollars to much-needed and underfunded defense procurement rather than to fanciful green technologies, making sure funds are available for the needed expansion of the Army and Marines before rushing to create make-work civilian jobs. Obama wants to spend much of the stimulus on transportation infrastructure and schools. Fine, but lots of schools and airports seem to me to have been refurbished more recently and more generously than military bases I’ve visited.”

--THIS WILL BE A HUGE STORYLINE NEXT YEAR – L.A. Times A1, “Paul Volcker is back, and he warns of tough times ahead: Volcker has been chosen by President-elect Barack Obama as a special economic advisor. His 'no pain, no gain' fiscal strategy worked in the '80s, and there's no sign he's softened that philosophy,” by Ralph Vartabedian: “A generation ago, Paul A. Volcker was a household name, the Federal Reserve chief who waged a hard-nosed but successful battle against virulent inflation … In speeches, interviews, public policy reports and congressional testimony, Volcker, 81, has laid out a fairly clear outline of what he thinks is wrong with the present-day financial system and the government's management of the economy. … A child of the Great Depression and a man of legendary personal thrift, Volcker thinks Americans have been living above their means for too long. … Bringing consumption back in line with income would not only crimp individuals and families, but also require major readjustments in the global economy, which has relied on the U.S. as consumer of last resort.”

--THE AUDACITY OF GROPE – Politico’s Eamon Javers, “Facebook pages in National Archives? … [T]he database being built by the Obama team will be of enormous interest … According to the National Archives, all documents created by the presidential transition are the personal property of the president-elect, not the federal government. In theory, transition staff could pack up all of the applications on Jan. 19 and send them to Chicago to be stored in Obama’s Hyde Park home. But what’s most likely to happen is that the papers will be turned over to the Obama White House, where they’ll become official presidential records and be subject to the Presidential Records Act.”

--WashPost, “Sudan Is Uneasy About Obama: Country's leaders expect the new administration to adopt a harder line against violence in Darfur.”

--USA Today lead story - "A 'tough fight' seen for Afghan war in '09: Twice as many troops needed up to 4 years."

--WE'LL SEE THIS STORY IN EVERY PAPER -- Newsday cover, "Fed's Economic Stimulus -- LONG ISLAND'S WISH LIST -- How the money could help here."

THE CRISIS:

--Politico’s David Rogers, “Obama will keep power to up auto bailout”: “An estimated $15 billion emergency loan package for the auto industry — now taking shape in Congress — leaves open the door for the incoming Obama administration to add more money if needed this winter by tapping into the Treasury’s financial rescue package. While President Bush has refused to make available the same Treasury funds, the White House has signaled tacit support of the legislative provision as part of the bargaining aimed at winning House and Senate passage this week. On its face, the draft language simply preserves the status quo, saying nothing in the new bill would “preclude” the use of existing powers. But its inclusion is important given the delicate tradeoffs now and the fact that few are convinced the $15 billion will be enough even to get the industry through the first quarter of 2009. General Motors Corp alone has estimated it could need $15 billion through the end of February, and that is under a scenario which may prove too optimistic given the dismal car sales in November. Chrysler LLC also is seeking $4 billion soon after January. And as much as lawmakers once hoped the Federal Reserve would help, Chairman Ben Bernanke has grown suddenly cautious after committing huge sums to help the banking industry. This puts the focus on President-elect Obama, who added his voice Sunday to those supporting passage of the loan package and promised to have specific recommendations in hand when he takes office Jan. 20."

--The lead photo in both the N.Y. Times and WSJ is a Pentecostal Detroit minister with SUVs on his altar as congregants prayed to save the auto industry.

--Wall Street Journal A1, “Outside Pressure Grows for GM to Oust Wagoner,” by John D. Stoll in Detroit and Greg Hitt: “General Motors Corp. Chairman and Chief Executive Rick Wagoner is coming under increasing pressure from outside the company to resign as part of any broad bailout of the auto maker by the federal government. On Sunday, Sen. Christopher Dodd (D., Conn.), a supporter of emergency loans for Detroit, suggested Mr. Wagoner should go if the government follows through and provides billions of dollars to help the auto giant restructure and return to profitability. ‘I think you've got to consider new leadership,’ the senator said on the CBS talk show ‘Face The Nation.’ A Dodd aide said later the senator's demand for change would not be a "condition written into the" rescue package coming together on Capitol Hill, and draft legislation prepared by top Democrats doesn't make that explicit requirement. But Mr. Dodd's displeasure was clear.”

--L.A. Times A1: “College application plans change as family budgets shrink: Financial aid becomes vital. Students consider the public Cal State and UC systems instead of private, out-of-state universities.

CABLE NEWS ALERT – N.Y. Post cover – ”MACHINE GUN KELLY: Arms for our own ‘Mumbai": “In the aftermath of the deadly Mumbai terror attacks, Police Commissioner Ray Kelly has come out with guns blazing - with a plan to get all 1,000 rookie cops ready to use heavy artillery in time for New Year's Eve, The Post has learned. The NYPD wants all 1,000 Police Academy recruits trained to use M4 automatic machine guns - which are now carried only by the 400 cops in its elite Emergency Service Unit - in time for the holiday celebration in Times Square.”

NETWORK NEWS ALERT -- Financial Times front page, “Video gaming defies gloom as consumers go for fun at home: The video game industry appears to be alone in bucking a retail recession as consumers turn to fitness workouts, musical jam sessions and fantasy worlds to take their minds off the credit crunch. Microsoft has reported November as its biggest sales month in Europe for the Xbox 360 console - sales rose 124 per cent on a year ago. In the US it announced its best Black Friday, the day after Thanksgiving, with sales up 25 per cent on the year. US industry sales are up 25 per cent so far this year, according to the NPD research firm. Game sales in October rose 35 per cent on 2007's total. The rises are in spite of a strong 2007.”

NBC MAKES DAVID GREGORY ANNOUNCEMENT -- Chicago Tribune media blogger Phil Rosenthal on the CHALLENGES facing Gregory: “Effectively hosting ‘Meet the Press,’ … Gregory will soon discover, requires a talent for not only asking pointed questions but the ability to cajole interviewees out of their comfort zones without making them uncomfortable. … [T]here is clearly an opportunity to tweak the program now, much the way Russert's installation as moderator changed it.”

BETSY FISCHER GETS CO-BILLING WITH DAVID GREGORY IN NBC’S RELEASE YESTERDAY: “David Gregory has been named moderator of NBC News’ ‘Meet the Press,’ effective immediately. In addition, Betsy Fischer, the program's longtime executive producer has extended her tenure with the top-rated broadcast. The announcements were made today by Steve Capus, President of NBC News. … Earning a reputation for being one of the toughest questioners of President Bush and his press secretaries, Washingtonian magazine named Gregory one of Washington’s 50 best and most influential journalists, labeling him the ‘firebrand in the front row.’ …

“Betsy Fischer has been with ‘Meet the Press’ for 17 years and has served as executive producer of the program since July 2002. Additionally, she served as Tom Brokaw’s producer for NBC News’ coverage of the 2008 presidential election, including the conventions, debates, and election night. Fischer served with Tim Russert in the same capacity during NBC’s coverage of special events, and throughout the 2000, 2004 and 2008 elections. She has produced interviews with U.S. presidents, key Cabinet officials, heads of state and every 2004 and 2008 presidential candidate. Fischer also created and produced an award winning series of special “Meet the Press” debates with the candidates from key 2002, 2004, 2006 and 2008 U.S. Senate races.

“Prior to being named to Executive Producer, Fischer was the Senior Producer of ‘Meet the Press’ and the NBC News Political/Polling Unit for five years. Her career at NBC News began with an internship at ‘Meet the Press’ while in college and she became the political researcher in 1992 for the program. Fischer was promoted to associate producer in 1995, and a producer in 1997. She has recently been awarded the honor of ‘Young Global Leader of the World 2008’ by The World Economic Forum which recognizes 250 global young leaders for their professional accomplishments, their commitment to society and their potential to contribute to the shaping of the future world. A native of New Orleans, Fischer did her undergraduate and graduate work at American University in Washington, DC. She is a Cum Laude graduate of their School of Public Affairs and earned a M.A. degree in Broadcast Journalism from the AU School of Communications.”

MEDIAWATCH – WashPost’s Howard Kurtz: “Joe Scarborough and Mika Brzezinski, who have gained a growing following for their on-air banter on MSNBC's "Morning Joe," are branching out. They are launching a morning radio show today, beginning with stations in New York and Los Angeles.”

WashPost A1, “Debt-Ridden Tribune Co. Considers Bankruptcy,” by Frank Ahrens: “Media giant Tribune Co., saddled with billions in debt since it became a privately held company last year, has hired bankruptcy advisers, according to its flagship newspaper, the Chicago Tribune. The Chicago-based company owns a coast-to-coast empire with television stations and newspapers in most of the nation's largest cities. Its holdings include the Los Angeles Times; cable television super-station WGN in Chicago; the Baltimore Sun; and WDCW-50 in Washington, the CW affiliate. The company even owns the Chicago Cubs. Tribune assumed some $13 billion in debt when real estate mogul Sam Zell engineered an employee-owned transition to private ownership one year ago this month. Hopes were high among employees that the company could be re-engineered to be a news company of the 21st century.

“But sharply dropping advertising revenue, a decline that has hit almost all of the nation's newspapers in recent years, has put the company in danger of being unable to meet its debt covenants and may force it to seek the shelter of bankruptcy reorganization, according to a source close to the company who spoke on the condition of anonymity because Tribune is privately held. The company has hired investment bank Lazard and law firm Sidley Austin to examine the company's options, according to an article on the Tribune's Web site. Bankruptcy, however, may not be the endgame for Tribune: Some creditors feel that newspapers forced into bankruptcy protection have even less chance of repaying their loans.”

BUSINESS BURST – WSJ A1, “Thain Spars With Board Over Bonus at Merrill: Merrill Lynch & Co. chief John Thain has suggested to directors that he get a 2008 bonus of as much as $10 million, but the battered securities firm's compensation committee is resisting his request, according to people familiar with the situation. The committee and full board are scheduled to meet Monday to hear Mr. Thain's formal bonus recommendations for himself and other senior executives of the New York company.”

No. 1 Oklahoma vs. No. 2 Florida, Jan. 8 – AP: “Nobody dominated the last two months of college football like Oklahoma and Florida, and the Gators and Sooners were easy picks to play in the national title game despite having one loss each. The power programs with Heisman-worthy quarterbacks and 12-1 records meet Jan. 8 in Miami. Oklahoma was ranked first and Florida second in the final BCS standings released Sunday. They were flip-flopped in the Associated Press poll, which is not used in determining the BCS.”

DESSERT – N.Y. Times “Arts, Briefly” – “Support for first dog: Soon after President-elect Barack Obama spoke at a news conference about getting his daughters a pet from an animal shelter because ‘a lot of shelter dogs are mutts like me,’ Patrick McDonnell, creator of the comic strip ‘Mutts,’ leapt into action. He quickly devised six strips supporting shelter adoptions. ‘I normally stay away from politics, but this was a perfect fit,’ Mr. McDonnell wrote in an e-mail message. The sequence, which begins on Monday, features Mooch the cat and Earl the dog, above, discussing the next first pet. ‘If the Obama household adopted a mutt,’ Mr. McDonnell added, ‘it would make a huge statement.’ ‘Mutts,’ distributed by King Features Syndicate, appears in more than 700 newspapers worldwide and online at muttscomics.com.”

****** A message from the Coalition for Affordable Prescription Drugs (CAPD): The high prices that drug makers set for prescription drugs can put financial strain on patients, employers, unions and others who provide health care coverage to more than 50 percent of Americans. Pharmacy benefit managers negotiate the lowest net price for prescriptions on behalf of employers, unions and government programs. But, as list prices – the starting point for those negotiations -- continue their nearly double-digit increases, the effects ripple throughout the system. The key to ensuring greater access and affordability lies in fostering greater competition. Facilitating faster reviews of generics and biosimilars, identifying off-patent drugs with little or no generic competition, and ending anti-competitive practices that keep safe, effective alternatives out of the market are also key to abating rising drug costs for patients. Learn more at affordableprescriptiondrugs.org******

Authors:

About The Author

Mike Allen is the chief White House correspondent for POLITICO. He comes to us from Time magazine where he was their White House correspondent. Prior to that, Allen spent six years at The Washington Post, where he covered President Bush's first term, Capitol Hill, campaign finance, and the Bush, Gore and Bradley campaigns of 2000. Before turning to national politics, he covered schools and local governments in rural counties outside Fredericksburg, Va., for The Free Lance-Star, then wrote about Doug Wilder, Oliver North, Chuck Robb and the Bobbitts for the Richmond Times-Dispatch, where he nurtured police sources on overnight ride-alongs through housing projects. Allen also covered Mayor Giuliani, the Connecticut statehouse and the wacky rich of Greenwich for The New York Times. Before moving to The Times, he did stints in the Richmond and Alexandria bureaus of The Washington Post. Allen grew up in Orange County, Calif., and has a B.A. from Washington and Lee University, where he majored in politics and journalism.